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Press Release

Charter Drives Margin Expansion and Healthy ARPU Growth in the
Second Quarter

ST. LOUIS--(BUSINESS WIRE)--Aug. 5, 2008--Charter Communications,
Inc. (NASDAQ: CHTR) (along with its subsidiaries, the "Company" or
"Charter") today reported its second quarter and six-month 2008
financial and operating results.

Second quarter revenues of $1.623 billion grew 8.9%
year-over-year on a pro forma(1) basis and 8.3% on an actual
basis primarily driven by increases in telephone and
high-speed Internet (HSI) revenues.

Second quarter adjusted EBITDA(2) of $591 million increased
10.1% year-over-year on a pro forma basis and 9.4% on an
actual basis.

"Our solid financial performance in the second quarter is a result
of our consistent strategies to increase bundled penetration, enhance
products and services, and improve the customer experience," said Neil
Smit, President and Chief Executive Officer. "Our priorities are to
deliver healthy financial growth, leverage infrastructure investments
and capture new growth opportunities."

Key Operating Results

All of the following customer growth and ARPU statistics are
presented on a pro forma basis. Charter added a net 98,900 RGUs during
the second quarter of 2008. As of June 30, 2008, Charter served
approximately 5,557,600 customers and the Company's 12,181,700 RGUs
were comprised of 5,162,000 basic video, 3,056,900 digital video,
2,787,300 HSI, and 1,175,500 telephone customers.

Telephone customers increased by approximately 90,500 during
the second quarter of 2008 and the number of telephone
customers is up nearly 70% year-over-year. Telephone
penetration is now 11.8% of telephone homes passed.

Digital video customers increased by approximately 33,900 and
basic video customers decreased by 44,800 during the second
quarter. Video ARPU was $58.73 for the second quarter of 2008,
up 5.6% year-over-year.

HSI customers increased by approximately 19,300 in the second
quarter of 2008. HSI ARPU increased year-over-year to $40.67.

Second quarter 2008 total ARPU increased 12.2% to $104.35 from the
same period in 2007, driven primarily by an increase in bundled
customers, advanced services growth, and upgrading customers to higher
service tiers.

Second Quarter Results - Pro forma

Second quarter revenues were $1.623 billion, a pro forma increase
of 8.9%, or $133 million. The increase resulted primarily from
increases in telephone and HSI revenues.

Telephone revenues increased to $134 million from pro forma
telephone revenues of $80 million a year ago, up 67.5% year-over-year
on a pro forma basis as our telephone customer base continues to grow.
HSI revenues were $339 million, up 10.4% year-over-year on a pro forma
basis, due to increases in ARPU and the number of customers. Video
revenues were $874 million, up 2.5% year-over-year on a pro forma
basis, primarily as a result of advanced services revenue growth
partially offset by a decline in basic video customers. Commercial
revenues rose to $96 million, or 17.1% on a pro forma basis, resulting
from increased sales of the Charter Business Bundle(R) to small and
medium-size businesses.

Operating expenses, which include programming, service and
advertising sales costs, were $698 million, an 8.7% increase
year-over-year on a pro forma basis, reflecting annual programming
rate increases, increased labor costs to support improved service
levels, and growth of the Company's telephone business and other
advanced services. Selling, general, and administrative expenses were
$334 million, up 7.4% on a pro forma basis compared to the year-ago
quarter, reflecting expenditures to further improve the customer
experience and increased marketing expenditures targeted at revenue
growth and retaining customers.

Adjusted EBITDA totaled $591 million for the second quarter of
2008, a pro forma increase of 10.1% compared to the year-ago quarter.

Net cash flows used in operating activities for the second quarter
of 2008 were $36 million, compared to $151 million for the second
quarter of 2007 on a pro forma basis. The decrease in cash flows used
in operating activities is primarily the result of changes in
operating assets and liabilities that used less cash in 2008 than the
corresponding period in 2007, and the increase in adjusted EBITDA.

Six Months Results - Pro forma

For the six months ended June 30, 2008, revenues were $3.187
billion, a pro forma increase of $281 million, or 9.7%, primarily from
telephone and HSI revenue growth.

Telephone revenues increased to $255 million from pro forma
revenues of $143 million a year ago, up 78.3% year-over-year. HSI
revenues increased to $667 million, up 11.2% year-over-year on a pro
forma basis. Video revenues were $1.732 billion, an increase of 2.9%
year-over-year on a pro forma basis. Commercial revenues increased to
$189 million, up 16.0% on a pro forma basis.

Operating expenses for the six months ended June 30, 2008 were
$1.380 billion, an increase of 8.8% year-over-year on a pro forma
basis; and selling, general, and administrative expenses were $671
million, up 10.4% on a pro forma basis.

Adjusted EBITDA totaled $1.136 billion for the first half of 2008,
a pro forma increase of 10.3% compared to the first half of 2007.

Net cash flows provided by operating activities for the first six
months of 2008 were $168 million, compared to $112 million for the
first half of 2007 on a pro forma basis. The increase in cash flows
provided by operating activities is primarily the result of adjusted
EBITDA growth offset by changes in operating assets and liabilities
that used more cash in 2008 than the corresponding period in 2007.

Adjusted EBITDA for the second quarter of 2008 rose 9.4% compared
to the year-ago period.

Income from operations was $230 million in the second quarter of
2008, compared to $200 million in the second quarter of 2007. The
increase was primarily related to adjusted EBITDA growth.

Net loss for the second quarter of 2008 was $276 million, or $0.74
per common share. For the second quarter of 2007, Charter reported a
net loss of $360 million and net loss per common share of $0.98. Net
loss decreased primarily as a result of an increase in adjusted EBITDA
and decreases in non-operating expenses.

Expenditures for property, plant, and equipment for the second
quarter of 2008 were $316 million, compared to second quarter 2007
expenditures of $281 million. The increase in capital expenditures
primarily reflects year-over-year increases in customer premise
equipment, specifically due to the purchase of advanced set top boxes.

Net cash flows used in operating activities during the second
quarter of 2008 were $36 million, compared to $148 million of net cash
flows used in operating activities for the second quarter of 2007. The
decrease in cash flows used in operating activities is primarily the
result of changes in operating assets and liabilities that used less
cash in 2008 than the corresponding period in 2007 and the increase in
adjusted EBITDA.

Six Months Results - Actual

Revenues for the six months ended June 30, 2008 increased 9.0%
year-over-year. Operating costs and expenses rose 8.6% compared to
year-ago actual results. Adjusted EBITDA for the first six months of
2008 grew 9.7% compared to the year-ago period.

Income from operations increased to $435 million for the first
half of 2008, compared to $356 million in the first half of 2007
primarily due to adjusted EBITDA growth.

Net loss for the first six months of the year was $634 million, or
$1.71 per common share. For the first six months of 2007, Charter
reported a net loss of $741 million and net loss per common share of
$2.02. The decrease in net loss is attributable to the increase in
adjusted EBITDA.

Capital expenditures for property, plant, and equipment for the
six months ended June 30, 2008 were $650 million, compared to $579
million in 2007. The increase in capital expenditures primarily
reflects year-over-year increases in customer premise equipment,
specifically an increase the purchase of advanced set top boxes.
Charter expects that capital expenditures in the year 2008 will total
approximately $1.2 billion and approximately 75% of that amount will
be directed toward success-based activities.

Net cash flows from operating activities for the first six months
of 2008 were $168 million, compared to $118 million for the first half
of 2007. The increase in cash flows provided by operating activities
is primarily the result of adjusted EBITDA growth offset by changes in
operating assets and liabilities that used more cash in 2008 than the
corresponding period in 2007.

As of June 30, 2008, Charter had $20.480 billion in long-term debt
and $63 million of cash on hand. Availability under the Company's
revolving credit facility totaled approximately $1.4 billion at June
30, 2008, none of which was limited by covenant restrictions. Charter
expects that cash on hand, cash flows from operating activities, and
the amounts available under its credit facilities will be adequate to
fund its projected cash needs, including scheduled maturities, through
2009. Cash flows from operating activities, and the amounts available
under Charter's credit facilities will not be sufficient to fund
projected cash needs in 2010 (primarily as a result of the CCH II, LLC
$1.9 billion of senior notes outstanding at July 2, 2008 that mature
in September 2010) and thereafter.

Use of Non-GAAP Financial Metrics

The Company uses certain measures that are not defined by
Generally Accepted Accounting Principles ("GAAP") to evaluate various
aspects of its business. Adjusted EBITDA, pro forma adjusted EBITDA,
and free cash flow are non-GAAP financial measures and should be
considered in addition to, not as a substitute for, net cash flows
from operating activities reported in accordance with GAAP. These
terms, as defined by Charter, may not be comparable to similarly
titled measures used by other companies.

Adjusted EBITDA is defined as income from operations before
depreciation and amortization, impairment charges, stock compensation
expense, and other operating (income) expenses, such as special
charges and (gain) loss on sale or retirement of assets. As such, it
eliminates the significant non-cash depreciation and amortization
expense that results from the capital-intensive nature of the
Company's businesses as well as other non-cash or non-recurring items,
and is unaffected by the Company's capital structure or investment
activities. Adjusted EBITDA and pro forma adjusted EBITDA are
liquidity measures used by Company management and its board of
directors to measure the Company's ability to fund operations and its
financing obligations. For this reason, it is a significant component
of Charter's annual incentive compensation program. However, this
measure is limited in that it does not reflect the periodic costs of
certain capitalized tangible and intangible assets used in generating
revenues and the cash cost of financing for the Company. Company
management evaluates these costs through other financial measures.

The Company believes that adjusted EBITDA, pro forma adjusted
EBITDA, and free cash flow provide information useful to investors in
assessing Charter's ability to service its debt, fund operations, and
make additional investments with internally generated funds. In
addition, adjusted EBITDA generally correlates to the leverage ratio
calculation under the Company's credit facilities or outstanding notes
to determine compliance with the covenants contained in the facilities
and notes (all such documents have been previously filed with the
United States Securities and Exchange Commission). Adjusted EBITDA and
pro forma adjusted EBITDA, as presented, include management fee
expenses in the amount of $32 million and $34 million for the three
months ended June 30, 2008 and 2007, respectively, which expense
amounts are excluded for the purposes of calculating compliance with
leverage covenants.

In addition to the actual results for the three and six months
ended June 30, 2008 and 2007, we have provided pro forma results in
this release for the three and six months ended June 30, 2007. We
believe these pro forma results facilitate meaningful analysis of the
results of operations. Pro forma results in this release reflect
certain sales and acquisitions of cable systems in 2007 as if they had
occurred as of January 1, 2007. Pro forma income statements for the
three and six months ended June 30, 2007 and pro forma customer
statistics as of March 31, 2008, December 31, 2007 and June 30, 2007
are provided in the addendum of this news release.

Additional Information Available on Website

A slide presentation to accompany the second quarter conference
call will be available on the Investor & News Center of our website at
www.charter.com in the "Presentations/Webcasts" section. Pro forma
data, including disclosure concerning the pro forma data and the basis
upon which it was calculated, for each quarter of 2006 and 2007 can
also be found on the Investor & News Center in the "Pro forma
Information" section.

Conference Call

The Company will host a conference call on Tuesday, August 5,
2008, at 9:00 a.m. Eastern Time (ET) related to the contents of this
release.

The conference call will be webcast live via the Company's website
at www.charter.com. Access the webcast by clicking on "About Charter"
at the top of the home page, then Investor and News Center.
Participants should go to the call link at least 10 minutes prior to
the start time to register. The call will be archived on the website
beginning two hours after its completion. Accompanying slides will
also be available on the site.

Those participating via telephone should dial 888/233-1576 no
later than 10 minutes prior to the call. International participants
should dial 706/643-3458. The passcode for the call is 52499711.

A replay of the call will be available at 800/642-1687 or
706/645-9291 beginning two hours after the completion of the call
through the end of business on August 12, 2008. The passcode for the
replay is 52499711.

About Charter Communications(R)

Charter Communications, Inc. is a leading broadband communications
company and the third-largest publicly traded cable operator in the
United States. Charter provides a full range of advanced broadband
services, including advanced Charter Digital Cable(R) video
entertainment programming, Charter High-Speed(R) Internet access, and
Charter Telephone(R). Charter Business(TM) similarly provides
scalable, tailored, and cost-effective broadband communications
solutions to business organizations, such as business-to-business
Internet access, data networking, video and music entertainment
services, and business telephone. Charter's advertising sales and
production services are sold under the Charter Media(R) brand. More
information about Charter can be found at www.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:

This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
regarding, among other things, our plans, strategies and prospects,
both business and financial. Although we believe that our plans,
intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, we cannot assure you that
we will achieve or realize these plans, intentions or expectations.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions including, without limitation, the
factors described under "Risk Factors" from time to time in our
filings with the Securities and Exchange Commission ("SEC"). Many of
the forward-looking statements contained in this release may be
identified by the use of forward-looking words such as "believe,"
"expect," "anticipate," "should," "planned," "will," "may," "intend,"
"estimated," "aim," "on track," "target," "opportunity" and
"potential," among others. Important factors that could cause actual
results to differ materially from the forward-looking statements we
make in this release are set forth in other reports or documents that
we file from time to time with the SEC, and include, but are not
limited to:

the availability, in general, of funds to meet interest
payment obligations under our debt and to fund our operations
and necessary capital expenditures, either through cash flows
from operating activities, further borrowings or other sources
and, in particular, our ability to fund debt obligations (by
dividend, investment or otherwise) to the applicable obligor
of such debt;

our ability to comply with all covenants in our indentures and
credit facilities, any violation of which, if not cured in a
timely manner, could trigger a default of our other
obligations under cross-default provisions;

our ability to pay or refinance debt prior to or when it
becomes due and/or refinance that debt through new issuances,
exchange offers or otherwise, including restructuring our
balance sheet and leverage position;

our ability to sustain and grow revenues and cash flows from
operating activities by offering video, high-speed Internet,
telephone and other services, and to maintain and grow our
customer base, particularly in the face of increasingly
aggressive competition;

our ability to obtain programming at reasonable prices or to
adequately raise prices to offset the effects of higher
programming costs;

general business conditions, economic uncertainty or slowdown,
including the recent significant slowdown in the housing
sector and overall economy; and

the effects of governmental regulation on our business.

All forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by this
cautionary statement. We are under no duty or obligation to update any
of the forward-looking statements after the date of this release.

(1) Pro forma results are described in the "Use of Non-GAAP
Financial Metrics" section and are provided in the addendum of this
news release.

(2) Adjusted EBITDA is defined in the "Use of Non-GAAP Financial
Metrics" section and is reconciled to net cash flows from operating
activities in the addendum of this news release.

(a) "Customers" include all persons our corporate billing records show
as receiving service (regardless of their payment status), except for
complimentary accounts (such as our employees). In addition, at June
30, 2008, March 31, 2008, December 31, 2007, and June 30, 2007,
"customers" include approximately 34,200, 30,600, 48,200, and 31,300
persons whose accounts were over 60 days past due in payment,
approximately 5,300, 4,700, 10,700, and 3,800 persons whose accounts
were over 90 days past due in payment and approximately 2,600, 3,200,
2,900, and 1,500 of which were over 120 days past due in payment,
respectively.
(b) "Basic video customers" include all residential customers who
receive video services (including those who also purchase high-speed
Internet and telephone services) but excludes approximately 395,600,
390,800, 376,400, and 348,400 customer relationships at June 30,
2008, March 31, 2008, December 31, 2007, and June 30, 2007,
respectively, who receive high-speed Internet service only, telephone
service only, or both high-speed Internet service and telephone
service and who are only counted as high-speed Internet customers or
telephone customers.
(c) Included within "basic video customers" are those in commercial
and multi-dwelling structures, which are calculated on an equivalent
bulk unit ("EBU") basis. EBU is calculated for a system by dividing
the bulk price charged to accounts in an area by the most prevalent
price charged to non-bulk residential customers in that market for
the comparable tier of service. The EBU method of estimating basic
video customers is consistent with the methodology used in
determining costs paid to programmers and has been used consistently.
As we increase our effective video prices to residential customers
without a corresponding increase in the prices charged to commercial
service or multi-dwelling customers, our EBU count will decline even
if there is no real loss in commercial service or multi-dwelling
customers.
(d) "Customer relationships" include the number of customers that
receive one or more levels of service, encompassing video, Internet
and telephone services, without regard to which service(s) such
customers receive. This statistic is computed in accordance with the
guidelines of the National Cable & Telecommunications Association
(NCTA) that have been adopted by eleven publicly traded cable
operators, including Charter.
(e) "Pro forma average monthly revenue per basic video customer" is
calculated as total quarterly pro forma revenue divided by three
divided by average pro forma basic video customers during the
respective quarter.
(f) "Pro forma average monthly revenue per customer" represents
quarterly pro forma revenue for the service indicated divided by
three divided by the number of pro forma customers for the service
indicated during the respective quarter.
(g) "Residential bundled customers" include residential customers
receiving a combination of at least two different types of service,
including Charter's video service, high-speed Internet service or
telephone. "Residential bundled customers" do not include residential
customers who only subscribe to video service.
(h) "Digital video customers" include all basic video customers that
have one or more digital set-top boxes or cable cards deployed.
(i) "Residential high-speed Internet customers" represent those
residential customers who subscribe to our high-speed Internet
service. At June 30, 2008, March 31, 2008, December 31, 2007, and
June 30, 2007, approximately 2,494,600, 2,470,300, 2,392,700, and
2,294,900 of these high-speed Internet customers, respectively,
receive video and/or telephone services from us and are included
within the respective statistics above.
(j) "Telephone customers" include all customers receiving telephone
service. As of June 30, 2008, March 31, 2008, December 31, 2007, and
June 30, 2007, approximately 1,133,800, 1,048,800, 920,600, and
669,500 of these telephone customers, respectively, receive video
and/or high-speed Internet services from us and are included within
the respective statistics above.
(k) "Revenue generating units" represent the sum total of all basic
video, digital video, high-speed Internet and telephone customers,
not counting additional outlets within one household. For example, a
customer who receives two types of service (such as basic video and
digital video) would be treated as two revenue generating units, and
if that customer added on high-speed Internet service, the customer
would be treated as three revenue generating units. This statistic is
computed in accordance with the guidelines of the NCTA that have been
adopted by eleven publicly traded cable operators, including Charter.
(l) "Homes passed" represent our estimate of the number of living
units, such as single family homes, apartment units and condominium
units passed by our cable distribution network in the areas where we
offer the service indicated. "Homes passed" exclude commercial units
passed by our cable distribution network. These estimates are updated
for all periods presented when estimates change.
(m) "Penetration" represents customers as a percentage of homes passed
for the service indicated.
(n) "Pro forma quarterly net gain (loss)" represents the pro forma net
gain or loss in the respective quarter for the service indicated.
(o) "Digital penetration of basic video customers" represents the
number of digital video customers as a percentage of basic video
customers.